What about SubLeasing House for Rooms for Rent?

Anyone think this is a good or bad idea?

Lease a 4 Bedroom house with a sub-lease clause, between $800-$1000 month.

Manage the property and rent out each bedroom for $400.00 a month.

4 Rooms x $400 month = $1,600 - $800 lease = $800 profit

5 Houses x $800 month = $4000 month income

There is room to cover utilities or maybe insurance.

If the owner is covering all the operating expenses and if that is legal to rent rooms to unrelated people in your area, that would be a great deal. However, no owner that has a single brain cell is going to rent you the house and pay for all the expenses. The lease would almost surely require you to pay for damage, maintenance, evictions, legal fees, lawsuits, etc. People who rent rooms are at the absolute bottom of the tenant food chain and should be expected to act like that. In addition, the turnover will be high because these people will want to have their own apartment.

Good Luck,


I can add $50 on each tenant to cover utilities, since most rooms for rent around here go for $450 - $500 on average. There is even room for insurance coverage, cable and lawn care.

It would require a neighborhood with no deed restrictions, and the homeowner would have to agree to the terms.

Many students want rooms for the school year.

The room lease could be minimum 6 months.

I know a guy in my area that does this. Well he buys the house, but rents the rooms. Not sublease. It seems he does OK with it. I almost did it to one of mine. I may in the future. I was gonna offer a no background check, 200 a month with a 400 dollar deposit, verbal leases only with no receipts or a contact number for me (reduce expenses). I would have to change the locks every other month I guess, to try and keep the nonpayers awa. That is the problem I couldn’t figure out, how do you keep the non payers out? There has to be a better way?

This is a rooming house, not a rental, and would be subject to a completely different set of rules.

It’s not a bad idea to lease a house with the right to sub-lease it. You will be responsible for the condition of the house. You will have vacancy and maintenance issues.

This plan can work for student housing. But you will be the one responsible to the owner. Make sure to get rental agreements and deposits on all your student tenants. The house owner must be aware of your plan in order for this to work.


This is an interesting idea as rooming houses seem to be very profitable in certain areas of course there is more management required as well. One thing I wonder about is for financing houses that you intend to rent out. Can you use the rental income as you would on a multifamily property to qualify? I’ve heard you can’t. I know this isn’t the same as subleasing a house.